AMDP Draft

To: CEO of Anima Mundi Development Partners (AMDP)
From: Tina Nguyen, Research and Development Department
Date: March 5, 2024
Subject: Investment Proposal: Consideration of Brewgooder

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After careful consideration and thorough market analysis, AMDP should invest in Brewgooder, a company that invests its profits from beer sales into clean water projects around the world. As a notable social enterprise brewery, this company continues to balance its profit, growth, and social impact through innovative means. 

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1. Goals 

In alignment with AMDP's mission, it's crucial to grasp key concepts shaping our investment criteria:

Triple Bottom Line

• Definition: A company’s ability to balance its successes in three key areas: profit, people, and planet. A firm solely focusing on the standard “bottom line” of financial performance is not enough (Harvard Business School). 

• Importance: Prioritizing the triple bottom line to positively impact people and the planet aligns with ethical values and also drives long-term business success, resilience, and stakeholder trust. It reflects a commitment to sustainable development and responsible stewardship of resources for the benefit of current and future generations. 

• Measure: 

Corporate Social Responsibility (CSR)

• Definition: the commitment of businesses to operate ethically and responsibly, considering their social, environmental, and economic impacts (Chicago Booth School of Business). 

• Importance: CSR plays a large role in  enhancing reputation, building stakeholder relationships, managing risks, gaining competitive advantage, and contributing to long-term sustainability goals

• Measure: 

Social Enterprise

• Definition: organizations whose objectives go beyond profit (Harvard Business Review)

• Importance: Most operate at the intersection of social or environmental challenges and market opportunities. Thus, they are able to offer innovative solutions to pressing issues while still prioritizing revenue. 

• Measure: 

Carbon Footprint

• Definition: total amount of greenhouse gasses  emitted directly or indirectly by human activities, usually expressed in equivalent tons of carbon dioxide

• Importance: It's crucial to reduce it to mitigate climate change (Environmental Protection Agency). Measure: 

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2. Brewgooder As A Company:

Background 

• Brewgooder is a social enterprise brewery founded in 2016. It produces craft beer and channels a significant portion of its profits towards clean water projects in developing countries. The company is well-regarded for its innovative approach to social entrepreneurship within the brewing industry. 

• ** might sound too ad like and not neutral 

Alignment with AMDP

• Triple Bottom Line: Brewgooder's business model aligns with the triple bottom line approach by balancing its financial success with social and environmental impact.

• Corporate Social Responsibility: Brewgooder demonstrates a strong commitment to CSR by investing in clean water projects, thus positively impacting communities and the environment.

• Social Enterprise: As a social enterprise, Brewgooder prioritizes its social mission alongside profit generation, showcasing a dedication to addressing societal needs.

• Carbon Footprint: Brewgooder's focus on social impact indirectly addresses carbon footprint concerns by contributing to the sustainability and well-being of communities.

• Brewgooder claims to prioritize social responsibility and environmental sustainability. According to their website, they commit to donating a portion of their profits to fund clean water projects in communities in need.

• ** The description should include a summary of the company’s own claims
  regarding its business practices in the areas AMDP is interested in. Please provide a citation of your source for the company’s claims.

Finances and Longevity

• Brewgooder has experienced steady growth, with increasing revenues and brand recognition.

• B Corp Report

• Growth and Expansion to UK - The Herald

• Growth in online sales, joining large brands like patagonia as high B corp 

• Contract w/ top Scots craft brewers

• UK collaboration in 2023

• Talk about industry growth in regards to gen z and millennials being the next large beer purchasers, and how these groups care about social responsibility in order to help the brand itself grow and remain profitable 

• However, concerns regarding the company’s longevity and profitability after Covid has been met with critical responses and must be discussed 

• Beer declines in sales

• Forbes 

• Increase in IPAs

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3. Critical Appraisal from Industry Sources:

• Beer Industry Journal critiques Brewgooder's claims, arguing that while their social mission is commendable, their beer quality and market reach may not be competitive enough to sustain long-term growth (Source: Beer Industry Journal).

• The Guardian offers a critical perspective, suggesting that while Brewgooder's social impact is significant, there are concerns about the scalability and long-term viability of their business model (Source: The Guardian).

4. Conclusions:

• Considering Brewgooder's commitment to social impact and its innovative approach within the brewing industry, it is worth considering investment. However, caution is advised, as critiques regarding market competitiveness and scalability should be thoroughly evaluated.

In conclusion, I propose that AMDP carefully considers the potential investment in Brewgooder, weighing both its claimed commitments to social responsibility and environmental sustainability against the critiques offered by industry sources.

Thank you for considering this proposal. Should you require further information or clarification, please do not hesitate to contact me.

Warm regards,

Tina Nguyen
Research and Development Department